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Justice Department Joins Suit Against KPMG WASHINGTON, D.C., Dec. 9, 2000 (SmartPros) The Department of Justice has joined in a lawsuit filed against KPMG that alleges that the accounting firm helped a client defraud the government by preparing false hospital cost reports that were submitted to Medicare and Medicaid. According to the suit, filed in Tampa, Fla. last year by former Columbia employee John Schilling, the reports were submitted by KPMG (then KMPG Peat Marwick) from 1990 to 1992 on behalf of Basic American Medical Inc. and Columbia Hospital Corporation, now known as HCA-The Healthcare Company. The lawsuit alleges that KPMG prepared cost reports that included false claims for reimbursement for five Florida hospitals owned by BAMI that were acquired by Columbia in 1992. The suit further alleges that KPMG prepared reserve cost reports, internal documents identifying the falsely claimed costs included in the filed cost reports, to set aside funds to repay the government if the unallowable costs were discovered. -- SmartPros News Staff Send comments to information@smartpros.com. 2000, Smartpros Ltd. All Rights Reserved. |
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